Business Bank Accounts for Contractors

When contracting through your own limited company, opening your own business bank account is crucial. This is information that any good contractor accountant should tell you.

Why do I need a Business Bank Account?

This is due to your limited company being a separate entity to you as a person – the company director and the shareholder. This all means that your company finances have to be flowing through a separate bank account – not your personal account which is used for personal reasons compared to business.

How Contractor Accountants can Help

If you have a sensible contractor accountant, they will guide you in the direction of setting up your business account straight after you form your limited company. This is down to the fact that the quicker your account is set up, the quicker you get paid from your contract.

Flexibility and customer care are very important factors to look for when you are going about finding a bank that suits you. Your contractor accountant should have recommendations of banks, so ask them which ones are the best. Contractor accountants are able to offer recommendations due to their existing clients’ feedback on the banks that they use themselves.

Mull over these points when choosing a bank:

1. Does the bank facilitate online banking? You need a bank that uses online banking, and to be honest if the bank doesn’t have online banking you should get straight out of there – you’re wasting your time. Just check there are no additional charges for utilising online banking services. The benefit of online banking is that you will be able to see online statements instantly when looking over past records of purchase.
2. There are no hidden fees. Make sure that your bank does not charge you that lovely extra bit of interest on balances. Be wary.
3. The fees do not rise. Make sure that you are paying a flat rate, not one that spirals up with time after your ‘introductory fee’ finishes.
4. Client Testimonials. Feedback from clients is always a great indication of knowing whether a bank is up to scratch. Your accountant should be able to help you with finding out these.

After asking yourself these questions, you will be on the right track to finding the right business bank account for you. When you go to open the account remember to bring all the necessary documents, for the bank will perform routine. The information you will need is the documents you received when your limited company was registered, memorandum, share certificates and passport to confirm your identification.